Fair Tax Debate

[Fog]

My personal soapbox: NFCU has the same tax status as the American Red Cross & the United Way, USAA pays federal taxes on their net income that helps buy F-18's, build roads & bridges & retire the national debt.
Does this clarify your choice-making? I hope so.

 

[TurnandBurn55]

...Unless, of course, you believe that income belongs to the people who, you know, actually have a stake in the organization (you old socialist you).

Why we tax income instead of consumption is one of life's great mysteries...

www.fairtax.org

/Soapbox off

 

[Flash]

Why we tax income instead of consumption is one of life's great mysteries...

Because it works?

 

[TurnandBurn55]

Because it works?

If by "works", you mean an annual bill of $265B wasted on compliance costs, another $300B in uncollected taxes (and that's just legally earned income, nevermind illicit activity), another $50B leaving the country to offshore tax havens...

It's a ludicrous system, and we've just decided to accept it because it's what we know.

 

[Flash]

If by "works", you mean an annual bill of $265B wasted on compliance costs, another $300B in uncollected taxes (and that's just legally earned income, nevermind illicit activity), another $50B leaving the country to offshore tax havens...

It's a ludicrous system, and we've just decided to accept it because it's what we know.

You don't think the same will happen with a national sales tax? You are fooling yourself if you don't......

Show me one well-developed industrial/post-industrial country where this tax system has worked. Just one.

 

[HokiePilot]

Florida...Texas...

Similar idea. Not exactly the same.

 

[mmx1]

Florida...Texas...

Similar idea. Not exactly the same.

US(2006 figures, ballpark):
$13 trillion GDP
Taxes account for 24.6% of GDP (Heritage foundation)
Income taxes: $2 trillion of $2.5 trillion total IRS collections

Texas:
$986 billion GSP
Revenue breakdown for 2008:
Total revenue:$86 billion, or 8.6%
Consumption (Sales, alcohol, motor vehicle, etc) Taxes account for $41 billion (4.1% of GSP)
By comparison, Texas also receives $26 billion from the federal government, essentially a de facto state income tax.

So no, I wouldn't say they're similar at all. You'd have to double sales taxes just to cover the state's liabilities, and raise them by 6-7 fold to equal the federal level of spending.